As the LM curve becomes steeper, an unexpected decrease in consumer confidence
A) will cause a relatively large increase in output and relatively large increase in the interest rate.
B) will cause a relatively small increase in output and relatively small increase in the interest rate.
C) is more likely to cause stock prices to rise.
D) is more likely to cause stock prices to fall.
C
You might also like to view...
Game theory is a method of analyzing the strategic interaction that occurs between small numbers of
A) people. B) firms. C) countries. D) All of the above are correct.
Why are many oligopolistic market outcomes conveniently described by a Prisoners' Dilemma?
A) The firms can always achieve the outcome that maximizes joint outcomes. B) The firms could do better than the Nash equilibrium if they collude. C) The outcome of a Prisoners' Dilemma is always efficient. D) The outcome of a Prisoners' Dilemma is always identical to the perfectly competitive outcome.